WEIGHING THE POTENTIAL IMPACT OF PE OWNERSHIP

When private equity ownership can affect your business, you have to make a decision.

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Our whitepaper looks at how a strategy predicated on making a quick exit could negatively impact your business and your clients, including:

  • What to likely expect when a PE firm acquires your broker/dealer
  • How a PE firm’s quick profit strategies can disrupt the financial advisor’s business
  • How a PE firm with significant debt can be vulnerable in changing market conditions and have limited cash flow for long-term investments
  • The signs advisors can look for, questions to ask, and ways to protect their business

Should you stay to see what happens, or transition to a partner with a long and stable track-record?

Private equity (PE) firms typically invest with a goal to turn a short-term profit for their investors. This strategy may involve aggressive cost cutting to eliminate redundancies and create a leaner company in the near term, but may not provide for investment in the broker-dealer’s long-term goals in key areas like technology or service—leaving you and your broker-dealer partner potentially at odds. 

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